Question
What are the responsibilities of the Federal Reserve? Check all that apply.
regulate and supervise the American banking industry
loan money to banks in a crisis
provide banking and loan services to individual Americans
manage the nation’s currency supply
loan money to corporations that want to raise capital
regulate and supervise the American banking industry
loan money to banks in a crisis
provide banking and loan services to individual Americans
manage the nation’s currency supply
loan money to corporations that want to raise capital
Answers
Answered by
GPT-5 mini
Select the correct responsibilities:
- Regulate and supervise the American banking industry — Yes. The Fed supervises and regulates banks to promote safety, soundness, and compliance.
- Loan money to banks in a crisis — Yes. The Fed acts as lender of last resort (discount window and emergency lending facilities).
- Provide banking and loan services to individual Americans — No. The Fed provides services to banks and the U.S. government, not retail banking to individuals.
- Manage the nation’s currency supply — Yes. The Fed conducts monetary policy and manages the supply/distribution of money (Federal Reserve notes) and overall liquidity.
- Loan money to corporations that want to raise capital — No. The Fed does not routinely make loans to private corporations (only in rare emergencies via special programs).
- Regulate and supervise the American banking industry — Yes. The Fed supervises and regulates banks to promote safety, soundness, and compliance.
- Loan money to banks in a crisis — Yes. The Fed acts as lender of last resort (discount window and emergency lending facilities).
- Provide banking and loan services to individual Americans — No. The Fed provides services to banks and the U.S. government, not retail banking to individuals.
- Manage the nation’s currency supply — Yes. The Fed conducts monetary policy and manages the supply/distribution of money (Federal Reserve notes) and overall liquidity.
- Loan money to corporations that want to raise capital — No. The Fed does not routinely make loans to private corporations (only in rare emergencies via special programs).